Information and Competitive Advantage: The Rise of General Motors

Seth Norton

Journal of Law and Economics, 1997, vol. 40, issue 1, 245-60

Abstract: During the mid-1920s Alfred P. Sloan instituted a number of innovations designed to provide the operating divisions at General Motors with more accurate and more timely information regarding final consumer demand. These innovations have not received much attention in attempts to explain General Motors' remarkable rise to dominance of the U.S. domestic automobile industry. The present article reviews these events and provides statistical tests affirming the success of these innovations at the same time as General Motors' increases in profitability and market share Copyright 1997 by the University of Chicago.

Date: 1997
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